PRESS DIGEST-Australian Business News - May 18

Compiled for Reuters by Media Monitors. Reuters has not verified these stories and does not vouch for their accuracy.

THE AUSTRALIAN FINANCIAL REVIEW (www.afr.com)

--Beverage manufacturer Coca-Cola Amatil CCA.AX (CCL.AX) has continued to lose market share in the vital supermarket segment, according to the latest Nielsen Scan Track data. In 2007 CCA held a 69.5 percent share, which slipped to 67.8 percent in 2008 and now to 64.3 percent year as at March 31. A major factor in the decrease appears to be pricing, with CCA's price per litre having risen 22.6 percent over this period, while major rival Schweppes lifted its prices only 2.8 percent. Page 13.

--Supermarket retailer Woolworths (WOW.AX)' bid to expand its organic grocery business is being scrutinised by the Australian Competition and Consumer Commission (ACCC) under creeping-acquisition laws. Woolworths plans to acquire and convert Macro Wholefoods into Thomas Dux gourmet grocery stores. As part of its assessment, the ACCC will consider if mainstream supermarkets and organic groceries should be treated separately, and whether premium groceries can be readily substituted for other products. Page 13.

--Professional services firm KPMG has teamed with management consultancy McKinsey in a bid to lead a study on the best way to implement the Federal Government's A$43 billion national broadband network (NBN). KPMG is considered by analysts to be a front-runner for the nine-month contract as it already holds an advisory role in the implementation of Tasmania's NBN, and has been involved in previous government plans for a national fibre-to-the-node network. Page 15.

--Global resources company BHP Billiton (BHP.AX) (BLT.L) (BHP) is strategically reviewing its commitment to nickel production as traditional mining methods become increasingly uncompetitive. BHP has already temporarily closed its Leinster mine in Western Australia, and permanently closed its Ravensthorpe nickel project, writing it off at a cost of US$3.7 billion. The review is being driven by the emergence of cheap nickel pig iron producers supplying the lucrative Chinese market. Page 16.

THE AUSTRALIAN (www.theaustralian.news.com.au)

--The Australian Bankers Association (ABA) has called for last week's changes to employee and executive share plans to be included in two government agency remuneration reviews already underway. The Government announced in its budget last Tuesday that upfront tax would now apply to employee granted shares or options rather than when they are vested or sold. The ABA has joined many large businesses in protesting the changes and wants the involvement of the Australian Prudential Regulation Authority and the Productivity Commission. Page 19.

--Medical expenses scheme Medicare is defending accusations of anti-competitive conduct in a Federal Court case that is seeking damages of A$65 million. Technology company Thelma Pty Ltd (ICS.AX) alleges that Medicare replicated its computer system and then gave the product away for free in a move that "destroyed" the market. Medicare claims it is not bound by the Trade Practices Act because it is not a corporation acting in a free market, and therefore cannot be accused of anti-competitive conduct. Page 20.

--Hundreds of thousands of Australians working overseas have begun reviewing their tax arrangements following last week's crackdown on international postings by the Federal Government. On Tuesday night, Treasurer Wayne Swan announced the removal of the 23AG exemption applied to workers employed outside Australia for periods between 90 days and two years. The move is expected to net the Government A$675 million over four-years. Page 20.

THE SYDNEY MORNING HERALD (www.smh.com.au)

--Retailers with a reputation for value are experiencing sales growth as consumers seek better value for money, according to analysts. Discount department store Big W has seen sales rise 6.7 percent compared to last year, while retailer Target has seen strong demand in its lowest price point products. "Recent sales numbers seem to suggest a marked flight to value -- that is, trading down -- has been occurring in the department store space," says Merrill Lynch analyst Silvia Spadea. Page 19.

--The latest mass market weekly magazine circulation figures have shown a continuing decline in sales and readership primarily due to the downturn in discretionary spending. The latest Roy Morgan readership survey released last week showed a 5.3 percent decline in women's weeklies over the March quarter, a decline of 450,000 readers over the same period last year. "We are resilient and we will continue to launch, improve and expand," Nick Chan, chief executive of Pacific Magazines, said yesterday. Page 20.

--The Commonwealth Bank of Australia (CBA.AX) (CBA) will, for the next two-years, maintain the existing 43 east coast branches of BankWest, the Perth-based chain it acquired last October. In the CBA's quarterly trading update released last week, chief executive Ralph Norris said he was happy with the performance of BankWest despite the eastern states branches still operating at a loss. Mr Norris also indicated there was no intention to continue with BankWest's previous plans to expand to 140 branches on the eastern seaboard. Page 21.

--A study tracking housing performance since the beginning of the last century has found property prices operate independently from actual demand and supply. Conducted by Royal Bank of Scotland, the study shows national house prices have fallen 7 percent from their peak and downward pressure is continuing. "With this downward momentum now in place, as well as the prospect of further large rises in unemployment, house prices could potentially fall further over coming months," the report says. Page 21.

THE AGE (www.theage.com.au)